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2023 (10) TMI 1339 - DELHI HIGH COURTSeizure of silver bars - seized silver was procured using the cash generated from the clandestine removal of the packaging material supplied by the petitioner firm - scope of Section 67 of the CGST Act - Reasons to believe - HELD THAT:- The officer while conducting the search may find various types of moveable assets. However, only those goods can be seized which are liable for confiscation while exercising the powers under Section 67 of the CGST Act - It is significant to note that the exercise of power under Section 67 pre-supposes ‘the reason to believe’ that a taxpayer has suppressed any transaction relating to supply of goods or services. The search in the present case was carried out after recording the reasons to believe that the petitioner is engaged in clandestine manufacturing and supply of their product, that is, various types of laminations. Therefore, silver, though being a movable asset, is not “goods” liable for confiscation while exercising the power under Section 67 of the CGST Act in relation to the products being traded by the petitioner. The argument that the petitioner has not been able to produce lawful evidence of purchase of silver is of no consequence insofar as the action under Section 67(2) of the CGST Act, as initiated in the present case, is concerned. As far as the argument that in the subsequent investigation the petitioner is found to be trading in silver is concerned, it is clarified that the respondents are not precluded from proceeding further with the investigation and taking appropriate action under the Act. There is no dispute that in case the respondents have reason to believe that the petitioner has suppressed any transaction, in relation to the supply of goods and services, that may involve silver, in contravention of any provisions of the CGST Act or the rules made thereunder, an appropriate action under Section 67 of the Act can be initiated - the respondents are directed to forthwith release the silver bars and coins seized from the petitioner during the search conducted on 07.02.2023. Let a fresh copy of the affidavit filed on behalf of the petitioner be supplied to Mr. Tripathi - List on 30.11.2023.
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